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Cramer explains how OPEC may have just ‘engineered the short-squeeze of a lifetime’

OPEC may have just "engineered the short squeeze of a lifetime," Jim Cramer said Wednesday.

The stock market gobbled up that short squeeze on Wednesday, as crude surged 9.3 percent on the news that the Organization of the Petroleum Exporting Countries finally reached an agreement to limit oil production for the first time in eight years.

"Going into the meeting, the Saudis upped their production to about 11 million barrels a day, from 10 million, so they are simply going back to where they were last year," the "Mad Money" host said.

Just doing the math, it made sense to Cramer. Selling 10 million barrels a day at $50 apiece is more than selling 11 million barrels at $45. It's also better than selling 11 million at the $40 price where oil might have otherwise headed.

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